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Business, 02.08.2021 22:10 tasiajm

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 477,000 units. Per Unit Total
Direct materials $6
Direct labor $12
Variable manufacturing overhead $13
Fixed manufacturing overhead $2,862,000
Variable selling and administrative
expenses $12
Fixed selling and administrative
expenses $1,431,000

The company has a desired ROI of 25%. It has invested assets of $24,804,000.

a. Compute the total cost per unit
b. Desired ROI
c. Markup percentage using target cost

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